Question

Mishrilal has purchased a mechanical sugarcane crushing machine run on electricity and has set it up on his field. Sugarcane crushing was earlier done with the help of bullocks, but people prefer to do it by machines these days. Mishrilal also buys sugarcane from other farmers and processes it into jaggery. The jaggery is then sold to traders at Shahpur. In the process, Mishrilal makes a small profit.

Based on the above paragraph answer the following questions.

1. What capital did Mishrilal need to set up his jaggery manufacturing unit? •

2. Who provides the labour in this case? •

3. Can you guess why Mishrilal is unable to increase his profit? •

4. Could you think of any reasons when he might face a loss? •

5. Why does Mishrilal sell his jaggery to traders in Shahpur and not in his village

Answer 1

Answer:

1. mishrilal used fixed capital.

2.he himself

4.when sugarcane production is loss.

5.because he get more money.